Payment processors work with hundreds if not thousands of merchants, but it only takes one data breach to cause a staggering financial loss. If a processor’s merchant experiences a data breach and thus becomes no longer PCI Compliant, the processor can be liable. But processors can protect against this risk with a Merchant Data Security policy.
What does a Merchant Data Security policy cover?
- Data Security Liability: covers amounts the insured is legally obligated to pay as damages resulting from a data security event (a breach)
- Data Security Event Expenses: covers all reasonable security event expenses (i.e. card replacement) and post event services expenses (i.e. credit monitoring)
- Limits of $50,000 or $100,000 per merchant.
This coverage was designed specifically for payment processors to protect against the enormous risk that comes with processing credit cards. According to the Ponemon Institute, the average data breach costs $204 per record lost and $6.75 million per breached company. This is coverage you can’t afford to be without.
DISCLAIMER: The descriptions herein are a summary only and not a warranty of coverage. Please see the policy form for full coverage details.